February 2025 Regulatory Updates

February 19th 2025

The AMF publishes the findings of its thematic inspections of asset management companies’ monitoring of fund investment ratios, compensation and claims

Supervision Asset management Collective investments UCIT Other professionals Journalists Investment services providers Investment management companies The AMF publishes the findings of its thematic inspections of asset management...

Why this matters

This regulatory update from the AMF (French financial markets regulator) focuses on thematic inspections of asset management companies' monitoring of fund investment ratios, compensation, and claims.

Sectors:

Investment Management Wealth & Private Banking

Topics:

Consumer Protection / Conduct Reporting & Disclosure Authorisation & Licensing

Asset ManagerWealth Manager

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🇫🇷 AMF Enforcement Significant

February 10th 2025

The AMF Enforcement Committee fines three individuals a total of €590,000 for price manipulation

Sanctions & settlements Journalists The AMF Enforcement Committee fines three individuals a total of €590,000 for price manipulation

AI Analysis

The AMF Enforcement Committee fined three individuals a total of €590,000 for engaging in price manipulation on French markets, highlighting the regulator's aggressive stance against market abuse. This enforcement action underscores the risks of coordinated trading schemes that distort supply, demand, or prices, serving as a deterrent for market participants. Compliance teams should note it as evidence of heightened AMF scrutiny on manipulative behaviors, even absent full case details.

Suggested considerations

Enhance surveillance: Implement real-time monitoring for spoofing, layering, wash trades, or coordinated orders creating artificial liquidity/pressure; calibrate alerts for atypical volumes or cancellations.
Training: Conduct annual sessions on MAR price manipulation indicators, emphasizing individual liability even in group schemes.
Policies: Update trading manuals to require pre-trade risk checks, order cancellation limits, and documentation of trading intent; mandate reporting of suspicious patterns to compliance/MLRO.
Audits: Review historical trades for FOAT, equities, or warrants; self-report if issues found to mitigate fines.
Governance: Senior managers certify no manipulation tolerance; integrate into MiFID II best execution and transaction reporting.

What changed

This is an enforcement decision, not a regulatory change; it reaffirms existing prohibitions under the French Monetary and Financial Code (Article L. 433-1-2) and EU Market Abuse Regulation (MAR, Regulation (EU) No 596/2014) against price manipulation, including fixing prices at artificial levels, disseminating false/misleading signals on supply/demand, or using deceptive orders. No new requirements are introduced, but it signals AMF's interpretation of manipulation in coordinated individual actions, consistent with prior cases.

Compliance impact

Urgency: High - Matters due to escalating fines (e.g., €590k here, up to €10M in ) and personal liability for individuals, amid AMF's pattern of 2024-2025 actions targeting manipulation across assets. Non-compliance risks reputational damage, trading bans, and appeals (e.g., ongoing in ); firms must act now to fortify defenses against investigations triggered by market data analytics.

References

AI-generated analysis. May contain errors or omissions — verify with the original AMF source before acting. Full disclaimer.

Sectors:

Capital Markets & Trading

Topics:

Market Abuse / Surveillance

Broker DealerAsset Manager

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🇫🇷 AMF News

February 5th 2025

The AMF approves its first bond prospectus for European green bonds under the ‘EuGB’ standard

Prospectus Fixed income Sustainable Finance Professional investors Journalists Listed companies and issuers The AMF approves its first bond prospectus for European green bonds under the ‘EuGB’ standard

Why this matters

This regulatory update from the AMF (Autorité des Marchés Financiers) announces the approval of the first bond prospectus for European green bonds under the 'EuGB' standard.

Sectors:

Capital Markets & Trading

Topics:

ESG / Sustainability Reporting & Disclosure

Asset ManagerBank

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🇱🇺 CSSF News

February 5th 2025

DEROGATION TAKEOVER LAW: Iris Financial S.A. (renamed Younited Financial S.A.) - ISIN: KYG7552D1354

Press release 25/03

Why this matters

This regulatory update relates to the takeover of Iris Financial S.A. by Younited Financial S.A., which are firms operating in the banking, investment management, and wealth management sectors. The key topics covered include authorization and licensing, prudential/capital requirements, and consumer protection.

Sectors:

Banking & Credit Investment Management Wealth & Private Banking

Topics:

Authorisation & Licensing Prudential / Capital Requirements Consumer Protection / Conduct

BankWealth Manager

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🇫🇷 AMF Report

February 5th 2025

The Autorité des Marchés Financiers (AMF) has published an analysis of the performance of the French real estate crowdfunding market, based on data collected from the 10 largest platforms in terms of inflows.

Asset management The Autorité des Marchés Financiers (AMF) has published an analysis of the performance of the French real estate crowdfunding market, based on data collected from the 10 largest platforms in terms of inflows.

Why this matters

This regulatory update from the AMF analyzes the performance of the French real estate crowdfunding market, which is relevant for investment managers, wealth managers, and fintech firms operating in this space.

Sectors:

Investment Management Capital Markets & Trading Wealth & Private Banking

Topics:

Reporting & Disclosure Authorisation & Licensing Consumer Protection / Conduct

Asset ManagerWealth ManagerFintech

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🇫🇷 AMF Consultation Significant

February 3rd 2025

The ACPR and the AMF publish the findings from the Working Group on Smart Contract Certification, and launch a Public Consultation

Crypto-assets Innovation The ACPR and the AMF publish the findings from the Working Group on Smart Contract Certification, and launch a Public Consultation

AI Analysis

The ACPR and AMF have published findings from their 2024 Working Group on Smart Contract Certification in DeFi, launching a public consultation on February 3, 2025, to explore certification frameworks for smart contracts, focusing on standards, audits, and regulatory options. This matters as it signals proactive French regulatory preparation for potential EU-level DeFi rules under MiCA, aiming to enhance security, governance, and compliance without immediate mandates, while industry feedback favors voluntary schemes.

Key dates

2025 (TBD): - Conclusions from consultation responses to be presented
February 3, 2025: - Working Group report published and public consultation launched
March 10, 2025: - Public consultation closed (per some reports; responses summarized afterward)
July 16, 2025: - ACPR/AMF published summary of consultation responses
July 2026: - DASP regime fully phased out under MiCA transitional period

Suggested considerations

Participate/Review: DeFi/crypto firms should review the report and response summary; late participation may inform ongoing discussions (consultation closed).
Assess Smart Contracts: Evaluate internal smart contracts against proposed standards (security, governance, compliance) and audit practices for voluntary adoption.
Monitor Developments: Track ACPR/AMF updates and EU MiCA/DeFi harmonization; prepare for potential fast-track CASP licensing if using certified contracts.
Engage Stakeholders: Join ACPR-AMF Fintech Forum dialogues; implement AML/CFT enhancements for smart contract risks, as AMF/ACPR assess ongoing compliance.

What changed

No binding regulatory changes yet; this is exploratory work anticipating future regulation. The report proposes:
Standards for security, governance, and compliance across execution environments.
Audit frameworks including public authority, third-party auditors, or self-certification.
Regulatory avenues from voluntary certification to obligations, with proportionate approaches. Consultation responses (summarized post-March 2025) confirmed support for technical standards and audits...

Compliance impact

Urgency: Medium. This is non-binding exploratory work with consultation closed, but it foreshadows potential mandatory smart contract certification in DeFi, aligning with MiCA's risk mitigation goals. Firms face low short-term risk but high long-term impact if voluntary standards evolve into obligations, especially amid DASP phase-out by July 2026 and EU harmonization needs; proactive adoption builds MiCA compliance edge.

References

AI-generated analysis. May contain errors or omissions — verify with the original AMF source before acting. Full disclaimer.

Response Due: 10 March 2025

Sectors:

Crypto & Digital Assets Capital Markets & Trading Payments & E-Money

Topics:

Authorisation & Licensing Technology & Cyber Consumer Protection / Conduct

Crypto ExchangeFintechBank

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🇺🇸 CFPB News

February 3rd 2025

Statement on Designation of Treasury Secretary Scott Bessent as Acting Director of the Consumer Financial Protection Bureau

On January 31, 2025, President Trump designated Secretary of the Treasury Scott Bessent as Acting Director of the Consumer Financial Protection Bureau (CFPB).

Why this matters

The update reports that Treasury Secretary Scott Bessent was designated Acting Director of the CFPB, an appointment and organisational news item. It contains no regulatory requirements, deadlines, or sector-specific content, so it is classified as news with General sector and topic tags and no urgency.

Sectors:

General

Topics:

General

All Firms

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